With Greece’s troubles being well documented in every publication (including this one) the words ‘bail-out’ and ‘fiscal austerity’ are well used. But are there any parallels in the world we can draw with the Greek troubles?
Portsmouth FC is a football club in trouble. They are languishing at the bottom of the Barclay’s Premier League and their financial woes are well documented. I see this team as a perfect (!) parallel for the Greek troubles.
Portsmouth FC is not performing well in football terms.
Greece has not been maximising its output and is not a rich eurozone country
Portsmouth FC is contemplating a wind-up order by the HMRC due to tax irregularities.
Greece has been massaging figures for years
The eurozone don’t want to let Greece go under and default on the single currency in order to retain currency credibility
The Premier League won’t want to let Portsmouth FC go under (how will this make the PL look on a global scale?) and will advance payments to avoid this.
Portsmouth FC has had a transfer embago.
Greece may lose its voting rights within the EU
Portsmouth FC supporters have launched protests outside of the club for poor management.
Due to public spending cuts Greek civil servants have already launched protests.
If Portsmouth FC survive the HMRC financial problems then they will be heavily regulated.
If Greece is to survive they will have to be heavily regulated by the EU/eurozone/ECB/IMF/EC et al.
As far as I can see there will only be one difference; Greece will get bailed-out and will live to fight another day while Portsmouth FC will be relegated (under the assumption they can find enough money) and they will be another club to fail under the pressures of debt.